Case Law Details
DCIT Vs Sikraft Infotech Private Limited (ITAT Mumbai)
Software Development expenses claimed by the assessee are in the nature of payment of salaries and allowances to the Engineers, travelling expenses, etc. The assessee is engaged in the process of providing automation, software and hardware engineering. The said expenditure is in the regular course of business photo studio
of the assessee, which has been named as Software Development Expenditure. The CIT(A) has given a categoric finding that the said expenses are not towards Software Development for use by the assessee but for rendering services to the clients including overseas clients. Thus, the expenditure has been incurred in the regular course of business of the assessee and for earning revenue and profits, hence, the expenditure is on revenue account.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Center, Delhi [ in short the ‘CIT(A)’ ]dated 09/05/2022 for the assessment year 2017-18.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
